Key Rate Durations with Var analysis
In the financial related writing, risk is characterized as the instability of surprising
results, by and large the estimation of benefits or liabilities of interest. Financial
Institutions are presented to different so

Week 6 Exercises Solutions
1.
a. The length of time to get a haircut
Continuous
b. The number of cars a runner passes each morning while running Discrete
c. The number of goals for a team in a school netball match Discrete
d. The number of patients treate

Week 3 Exercises Solutions
1.
545
X
34.06
16
2.
Xw
Median = 37.50
$5.00(270) $6.50(300) $8.00(100)
$6.12
270 300 100
3. The company has ignored the fact that the majority of the employees have received 3% or less.
To get a better idea of the true avera

Week 2 Exercises - Solutions
1. A Random sampling
2. D Systematic
3. A Exactly the same as the population mean
4. C Stratified random sampling
5. Likely budget for this research? Large? Small? Local newspaper so not big budget.
a. Face-to-face interviews

Week 5 Exercises - Solutions
1. The key to this question is the word or. Since it is possible both for the vehicle to be
overweight and for the driver to have exceeded the permitted driving time, the events
are not mutually exclusive.
P(time exceeded) = 4

1
Week 7 Exercises Solutions
1. a. 400 x (1.05) 20 = 1061.32
b. 3000 x (1.02) 5 = 3312.24
c. 1000 x (1.09) 6 = 1677.10
2.
20000 x (1.08) 2
3.
We need to solve 50000 = P0 x (1.05) 15
a. P0 = 50000/(1.05) 15 = 24,050.85
= 23,328
4. If the customer withdraws

Week 8 Exercises Solutions
1.
a. Probability q = 1 - 0.3 = 0.7
b. Expected value at A = 200x0.3 -10x0.7 = 53
Expected value at B = 80x0.8 + 0x0.2 = 64
c. Choose Action 2 since it gives rise to the greatest expected value.
d. In order for you to change you

Week 9 Exercises - Solutions
1. a.
X
45
4.5
10
r
Y
1111
111.1
10
sx
5310.9
14.5
24.292
1.269 s y
9
9
163.5
0.589
(10 1)(1.269)(24.292)
b. See spreadsheet file
c. r2 = (0.589)2 = 0.3469
d. The correlation coefficient is not particularly strong and on

A Report on Financial Market Instruments
1
Table of Contents
Introduction.3
UK Equities.3
Five Year Outlook for the UK Equities.4
Factors that will drive Future Performance of UK Equities.4
Fixed Interest Market.4
Five Year Outlook for the Corporate Bonds

Title
Name
Institution
Professor
Date
The nature of systemically important financial institutions (SIFIs) and explains why and
how such institutions posed, and may pose, a threat to the financial system and to the
economy
Despite the fact that there is no

Title
Name
Institution
Professor
Date
Executive summary
Despite the fact that there is no common definition of Systematically Important Financial
Institution, a myriad of policy makers regard it as a financial institution which is so important to
the econ

Principal Component Model with VaR analysis
Past sections inferred interest rate danger supporting conditions without
unequivocally demonstrating the authentic data contained in the element structure of the
interest rate changes. In the first place, numer

Week 1 Exercises Solutions
1. Ratio 7:5:3 so 4200, 3000, 1800
2. a. x = 7
b. x = 4 2/3
3. a. y = x/2 + 1
b. y = x/(b+7)
4. Total cost
30,151
30,151
100x
x
=
=
=
=
5. (a) Total Cost = 20,000 + 5q
(100 50) + 8,250 + 11,200 + 100x
24,450 + 100x
30,151 24,450